=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2002/05/16/f= inancial0749EDT0017.DTL ---------------------------------------------------------------------- Thursday, May 16, 2002 (AP) EasyJet announces deal to buy rival carrier Go (05-16) 05:37 PDT LONDON (AP) -- The no-frills airline easyJet is buying its rival Go, which got its start as the low-price division of British Airways, for about $542 million. EasyJet chairman Stelios Haji-Ioannou said Thursday the planned acquisition "will contribute significantly to our objective to become Europe's leading low-cost airline by strengthening our position in important target markets." The deal will also give easyJet "a larger, stronger platform from which = to exploit growth opportunities profitably," he said. EasyJet announced less than two weeks ago that it was in talks about a possible takeover of its no-frills rival. Go, developed as British Airways' bargain airline, was bought out last June by management, backed by venture capitalists 3i. Go chief executive Barbara Cassani called the deal "a tremendous compliment to all of us at Go" and added she was "particularly pleased that everyone at Go will share in the rewards from our success." EasyJet started in 1995 and now flies to 45 destinations using 31 aircraft. In addition to its main base at Luton Airport north of London, it flies from Gatwick Airport south of London and from Liverpool in northern England. Its overseas airport hubs are at Amsterdam and Geneva. EasyJet has reported strong passenger traffic despite the downturn in the industry as a whole since the Sept. 11 terrorist attacks. It has said it is considering all possible opportunities for expansion in the European short-haul market, including the addition of new routes. The airline said last week it had acquired an option to buy Deutsche BA, the German subsidiary of British Airways and Germany's second-biggest airline. That agreement gives easyJet the option to acquire Deutsche BA at any ti= me up to July 3, 2003. EasyJet plans to finance its 374 million pound purchase of Go partly by raising 276.7 million pounds ($400 million) through a rights issue, the airline said. EasyJet chief executive Ray Webster told British Broadcasting Corp. radio that the combination with Go would not mean an increase in fares. "This is an opportunity to keep prices low," he said. "That is the beauty of our model. We need low fares to stimulate the market that we are developing. =20 ---------------------------------------------------------------------- Copyright 2002 AP